NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains

Robert Koopman, William Powers, Zhi Wang, Shang-Jin Wei

NBER Working Paper No. 16426
Issued in September 2010
NBER Program(s):   ITI

This paper provides both a conceptual framework for decomposing a country’s gross exports into value-added components by source and a new bilateral database on value-added trade. Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature. To illustrate the potential of the decomposition, we present a number of applications including re-computing revealed comparative advantages and constructing an index to describe whether a country-sector is likely in the upstream or downstream of global production chains.

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This paper was revised on December 5, 2011

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Document Object Identifier (DOI): 10.3386/w16426

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